The exercise allows the user to piece together an actual set of financial statements by using the information provided by an example ranch business. In this case, it has a list of accounts associated with each of the balance sheet and income statement. You will be required to place each account into its proper classification within each financial statement. The basic goal of this exercise is to be able to identify proper placement of each of the accounts associated with their respective financial statements. If done properly, the numbers used in calculating the financial ratios should match up with some of the ones generated from the financial statements.

BASIC BALANCE SHEET ASSETS C D A Current Assets BCD = E S F G Net Non-Current Assets F -G H I Total Assets E I J S LIABILITIES K L M Current Liabilities S P+Q Non-current Liabilities O+P+Q=R Total Liabilities EQUITY Owner's Equity J-R S S Total Liabilities & Equity R S T S A A O West Texas Ranch Accounts Payable Accounts Receivable Accrued expenses Inventory Non Current Liabilities Land Debt Current Portion of debt INon Current Assets at cost Cash Accumulated Depreciation Prepaid expenses Land Income Taxes Payable 1,700.00 1,000.00 2,900.00 10,000.00 176,371.00 9,737.00 496,380.00 77,526.00 71,870.00 2,000.00 1,500,000.00 $ BASIC INCOME STATEMENT GROSS REVENUE TOTAL C A BC D Gross Revenue EXPENSES E F G H I T Total Operating Expense E F GH+I+ J+ K- L Net Income from Operations D-LM N S P NET INCOME N 0-P Q West Texas Ranch Total Utilities $ 10,193.00 Depreciation Non Cash Transfer out Capital Gains (Losses) $ 32,870.00 48,000.00 (13,364.00) $ $ Labor $ 48,000.00 Veterinary Taxes $ 5,825.00 $ 10,500.00 Inventory Change (Expenses) Interest Expense Repairs and Maintenance Cash Receipts Feed Inventory & Accounts Receivable Change $ 5,470.00 $ 18,454.00 38,629.00 175,838.00 23,400.00 2,900.00 $ $ $ BASIC BALANCE SHEET ASSETS C D A Current Assets BCD = E S F G Net Non-Current Assets F -G H I Total Assets E I J S LIABILITIES K L M Current Liabilities S P+Q Non-current Liabilities O+P+Q=R Total Liabilities EQUITY Owner's Equity J-R S S Total Liabilities & Equity R S T S A A O West Texas Ranch Accounts Payable Accounts Receivable Accrued expenses Inventory Non Current Liabilities Land Debt Current Portion of debt INon Current Assets at cost Cash Accumulated Depreciation Prepaid expenses Land Income Taxes Payable 1,700.00 1,000.00 2,900.00 10,000.00 176,371.00 9,737.00 496,380.00 77,526.00 71,870.00 2,000.00 1,500,000.00 $ BASIC INCOME STATEMENT GROSS REVENUE TOTAL C A BC D Gross Revenue EXPENSES E F G H I T Total Operating Expense E F GH+I+ J+ K- L Net Income from Operations D-LM N S P NET INCOME N 0-P Q West Texas Ranch Total Utilities $ 10,193.00 Depreciation Non Cash Transfer out Capital Gains (Losses) $ 32,870.00 48,000.00 (13,364.00) $ $ Labor $ 48,000.00 Veterinary Taxes $ 5,825.00 $ 10,500.00 Inventory Change (Expenses) Interest Expense Repairs and Maintenance Cash Receipts Feed Inventory & Accounts Receivable Change $ 5,470.00 $ 18,454.00 38,629.00 175,838.00 23,400.00 2,900.00 $ $ $